corporation to corporation transfer of truck ?

Why is it going under, and why start another if you can't run the first one

 

So you are obfuscating your obligations instead of fixing the company up?

Got it.

Why don't you file chapter 11 and go through the process to fix the problems.

So here is what you do, sell the truck.

Otherwise you need to buy the truck from the one company to move the ownership of it and that means a loan if it isn't paid off or a reasonable amount of cash if it is, there is no other way legally to transfer it.

By the way, you as an officer of the company can still be liable for the debts of the company seeing you were a one man operation, you can still be told by the court to fix the problem before a declaration of insolvency can be passed and discharge of the debts take place if the creditors feel there is a need to do so.

 

From the court's perspective, as long as the new owner pays fair value for the truck, you can transfer the title. For example if the truck is worth $10K more than the loan balance, the new corporation needs to pay the current owner $10K.

If you sell it for less than fair market value, you have a good chance of running afoul of the fraud statues and wearing silver bracelets at some point......

I'd have my BK attorney set it up to avoid any and all problems.

 

That's subject to the lender's permission.

(edit) the lender's contract is with the one corporation, which is going into bankruptcy and not with the new one, so they have to get permission but even with the worth of $10k more than the loan balance, it doesn't matter, the lender is the one who holds the note, not the company and the judge will have to check it out and approve it once it goes into bankruptcy.

You can't transfer title to property with a lien on it, you have to buy the truck and then if your new corp is without capital in the second company. because it is a new corp, you have to establish credit and if you can't get a loan because of the pending bankruptcy which may pop up, the only solution is to sell the truck outright or let the lender take it back - not repo'd but a return.

 

Set up as S- corp easier that way! And good luck! Been there done that mistake but didnt go belly up came close though!